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London housing boom: First-time buyers’ deposit three times higher than UK average

The London housing marketing is becoming increasingly difficult to crack for first-time buyers (FTBs), as the average deposit in the city sits at akmost 300% of the national average.

FTBs in London are having to save up an average of £70,374 for a deposit, according to figures released today by Your Move and Reeds Rains. This figure is almost three times the national average of £25,926.

In June, just eight per cent of hopeful FTBs expected to be on the housing ladder by the end of the year, down from 16 per cent in the same month of 2014.

According to data released today by the National House Building Council (NHBC), London has seen only only 12,643 homes registered in the first six months of this year, marking a 16 per cent decline in registrations compared to the same period in 2014.

Your Move and Reeds Rains director Adrian Gill said FTBs are now sacrificing quality when buying a property, he commented: “As demand in the property market remains strong, first-time buyers are willing to accept a home in less-than-perfect condition,”

“It may even be the case that some first-time buyers actively select properties with faded decor or faulty kitchens, judging that the reduction they can secure on the asking price is greater than the cost of any required renovation work.”

This was posted in Bdaily's Members' News section by Ellen Forster .